UPDATE: The European Union has just announced an indefinite freeze on Russian assets across Europe, a bold move designed to ensure that Hungary and Slovakia cannot veto the use of these funds to support Ukraine. This decision, confirmed earlier today, is set to impact the flow of billions of euros earmarked for Ukraine’s military and financial needs.
In a critical statement, EU Council President António Costa emphasized that the freeze will remain in place until Russia halts its aggression against Ukraine and compensates for the extensive damage inflicted over the past nearly four years. Costa noted, “Today we delivered on that commitment,” highlighting the EU’s determination to aid Ukraine amid ongoing conflict.
The assets in question, estimated at around 210 billion euros (approximately $247 billion), were previously blocked under sanctions due to Russia’s invasion of Ukraine on February 24, 2022. This latest action prevents Hungary and Slovakia—both led by Moscow-friendly governments—from obstructing the EU’s efforts to leverage these funds for Ukraine’s recovery.
The urgency of this decision comes as EU leaders prepare for a summit on December 18, 2025, where they will discuss strategies for utilizing these assets to support Ukraine’s financial stability through 2026-2027. The summit aims to address Ukraine’s pressing financial and military needs, with Costa declaring, “Next step: securing Ukraine’s financial needs for 2026–27.”
Hungarian Prime Minister Viktor Orbán, a strong ally of Russian President Vladimir Putin, reacted vehemently against the EU’s decision. He accused the European Commission of undermining EU law, stating, “The rule of law in the European Union comes to an end.” Orbán’s comments reflect the growing tension within the EU regarding the ongoing conflict in Ukraine and the bloc’s response to it.
Meanwhile, Slovak Prime Minister Robert Fico has also voiced strong opposition. In a letter to Costa, he stated he would refuse to support any initiatives covering Ukraine’s military expenses, warning that this could jeopardize U.S. peace efforts, which rely on these resources for Ukraine’s reconstruction.
The European Commission argues that the ongoing war has severely impacted energy prices and economic growth within the EU, necessitating immediate action. To date, the EU has provided nearly 200 billion euros (around $235 billion) in support to Ukraine, underscoring the dire need for financial aid as the conflict continues.
In a separate development, the Russian Central Bank has initiated legal action against Euroclear, a Belgian financial clearing house holding the majority of these frozen assets, claiming damages from the sanctions that have restricted Moscow’s access to its funds. The Central Bank has labeled the EU’s plans to use these assets for Ukraine as “illegal,” arguing that they violate principles of sovereign immunity.
As this situation unfolds, the implications for both European and international stability are significant. The EU’s decisive action to freeze Russian assets signals a commitment to supporting Ukraine while navigating internal dissent from member states. Watch for developments from the upcoming EU summit, where leaders will further outline plans for the future of Ukraine’s financial support amidst ongoing challenges.
